Transocean – The National Wildlife Federation Bloghttp://blog.nwf.org
The National Wildlife Federation's blogTue, 26 Sep 2017 19:54:56 +0000en-UShourly1https://wordpress.org/?v=4.8.2Gulf Spill Rig Owner: Well Done, Execs!http://blog.nwf.org/2011/04/gulf-spill-rig-owner-well-done-execs/
http://blog.nwf.org/2011/04/gulf-spill-rig-owner-well-done-execs/#respondMon, 04 Apr 2011 16:08:19 +0000http://blog.nwf.org/wildlifepromise/?p=17946You just can’t make this stuff up. Transocean, the company that owned the Deepwater Horizon oil rig at the center of last summer’s Gulf oil spill, is giving bonuses to its executives for outstanding achievements in safety.

The payout contrasts with that for 2009, when the company withheld all executive bonuses after incurring four fatalities that year “to underscore the company’s commitment to safety.”

In a filing on executive pay, Transocean said, “Notwithstanding the tragic loss of life in the Gulf of Mexico, we achieved an exemplary statistical safety record.” Based on the total rate of incidents and their severity, “we recorded the best year in safety performance in our company’s history.”

A Transocean rig in the Gulf of Mexico (photo: BP America)

Transocean, along with BP and Halliburton, is under investigation by the US Department of Justice for its role in the disaster. The Hill‘s E2 blog reports that government officials are irate at the news. Former EPA chief William K. Reilly, who helped lead the Obama Administration’s analysis of what went wrong, had harsh words for the company:

“I think Transocean just doesn’t get it […] It’s embarrassing to see a position taken like that by an industry leader.”

The SEC filing “ought to be evidence No. 1” of the culture of complacency within the oil industry identified in the oil spill commission’s final report, Reilly said.

Unbelievable. Instead of giving themselves pats on the back, maybe Transocean should make good on its responsibilities to the people and wildlife in the Gulf, who are still waiting for money for restoration projects to rebuild their wetlands, fisheries, and coastlines.

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UPDATE: 4/5/2011 — Transocean is scrambling into damage-control mode, issuing a statement yesterday to apologize for their wording–but not for the bonuses themselves: “We acknowledge that some of the wording in our 2010 proxy statement may have been insensitive in light of the incident that claimed the lives of eleven exceptional men last year and we deeply regret any pain that it may have caused,” the company said in the release. “Nothing in the [SEC filing] was intended to minimize this tragedy or diminish the impact it has had on those who lost loved ones. Everyone at Transocean continues to mourn the loss of these friends and colleagues.”

Transocean President/CEO Steven Newman received a combined bonus and salary increase of $574,062 for his sterling leadership.

Let me pose a hypothetical situation: Three corporations cause one of the biggest environmental disasters in recorded history, and an investigation shows it could have avoided it if they’d been focused on safety. Not only that, but the government could have prevented the disaster if only they hadn’t rubber-stamped the project in the first place.

So, what would the next logical step be?

If you’re like me you probably thought, “Well, obviously we need to get better rules in place and make sure they’re followed.”

This is, of course, what’s going on with the Deepwater Horizon disaster, which will continue to impact the Gulf of Mexico for years to come.

BP, Transocean, and Halliburton were found grossly negligent by the federal Oil Spill Commission, which also criticized regulators for failing in their duty to the American public. But it wasn’t all about pointing fingers: the commission’s report included some common sense recommendations. Now they face the unenviable task of convincing Congress to act…and this can be like talking to a small child who happens to control your bank account and car keys.

William Reilly (Bush Sr.’s EPA chief) and former Senator Bob Graham are the Oil Spill Commission’s co-chairs, and they trekked up to Capitol Hill last week to make the case for stronger rules and safety first. Drilling is an important part of our economy, they both said, but we need to do it responsibly, and the system failed us.

I won’t bore you with the details (there’s a reason they show these things on C-SPAN and not EPSN) but suffice to say: One group of Congressmen protested that “regulation” is just code for “job-killing” and generally accused Reilly and Graham of bias and skullduggery. The other group said better safe than sorry, and vowed to learn the lessons of this disaster.

At one point, Sen. Lisa Murkowski (R-AK) took issue with the word “systemic,” which was how the commission described problems in the drilling industry. Are they really systemic, she asked, and not just the fault of a couple of rogue companies? Also, she added mockingly, are we supposed to believe that good luck was the only thing that prevented a big spill before now? Reilly paused a moment and then responded.

“Senator,” he said, “I would answer that question with just one word: Yes.” We’ve had a lot of near misses, he explained, and it’s “inconceivable” that the problems are confined to one rig or one company.

“We’ve done what we can do,” Reilly said to the assembled Congressmen and women, “but now it’s over to you.”

Rep. Ed Markey (D-MA) has introduced legislation that would accomplish many of the goals set by the Commission. It’s going to take a lot of work to make sure that these reforms are instituted, but you can make a difference by sending an email to your members of Congress, telling them not to buy into the false choice between jobs and safety. After all, it’s your Gulf, too.